WORLDWIDE: HEADLINES 

Logitech Reports 2% Decline In Quarterly Sales; Raises Outlook 

Logitech International (LOGN.S) reported a 2% drop in third-quarter sales as the computer peripherals-maker lapped tough comparisons from a year earlier, when the pandemic boosted demand for its products. 

However, the maker of keyboards, mice and headsets raised its forecast for the current fiscal year to between 2% and 5% sales growth in constant currency, and between $850 million and $900 million in non-GAAP operating income. 

It had previously forecast flat sales growth, plus or minus 5%, and non-GAAP operating income of $800 million to $850 million. 

For the third quarter, sales fell to $1.63 billion in the three months ending Dec. 2021. The company had posted quarterly sales of $1.67 billion a year earlier, boosted by stay-at-home workers buying more keyboards, mice and webcams. 

The Swiss-American company, the first to manufacture and sell computer mice in the 1980s, said its non-GAAP operating income fell by 37% to $302 million during the reported quarter. 

Late last year, the company said it was facing unprecedented problems getting parts to make its products, which also include headsets, video conferencing device and wireless speakers. 

Full coverage: REUTERS 

Australian Inflation Surges In Q4, Market Bays For Rate Hikes 

Australia’s core inflation flew to its fastest annual pace since 2014 in the December quarter as fuel and housing costs led broad-based price pressures, a shock that will stoke market speculation of an early hike in interest rates. 

Data from the Australian Bureau of Statistics out on Tuesday showed the headline consumer price index (CPI) rose 1.3% in the fourth quarter and 3.5% for the year, topping forecasts. 

The trimmed mean measure of core inflation favoured by the Reserve Bank of Australia (RBA) jumped 1.0% in the quarter, the largest increase since 2008. 

The annual pace picked up to 2.6%, above both the 2.3% forecast and the middle of the RBA’s 2% to 3% target range. 

That will be a surprise to the RBA, which had expected core inflation would not reach 2.5% until the end of 2023, a major reason it did not expect to hike rates this year. 

That outlook will now be sorely challenged when the RBA Board meets on Feb.1. Analysts generally assume it will keep rates at 0.1% but could well call an end to bond buying, part of its quantitative easing campaign. 

“The RBA is all but certain to end its asset purchase scheme at its meeting next week,” said Ben Udy, an economist at Capital Economics. “Our expectation for wage growth to firm up over the course of this year means the Bank should have enough evidence to hike rates by November.” 

The rising cost of living, coupled with sky-high housing prices, is also shaping up to be a bone of political contention in a national election due by May. 

Full coverage: REUTERS 

WORLDWIDE: FINANCE/MARKETS 

Asian Shares, U.S. Futures Slide As Traders Fret About Ukraine, Rate Rises 

Asian shares and U.S. futures tumbled on Tuesday after a tumultuous Wall Street session, with investors nervous about the situation in Ukraine and eyeing the U.S. Federal Reserve amid worries about a move to tighter monetary policy globally. 

NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western “hysteria” in response to its build-up of troops on the Ukraine border. 

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) shed 1.2%, falling to its lowest in a month, and Japan’s Nikkei (.N225) skidded 2% to its lowest level since August. 

There were sharp declines around the region. Hong Kong (.HSI) lost 1.64% and Korea’s KOSPI (.KS11) fell 1.67%. The Australian benchmark (.AXJO) tumbled 2.73% to hit an eight-month low, hurt also by a high inflation print Tuesday morning that stoked fears of approaching rate hikes Down Under. 

Asian markets were being dragged lower by concerns about faster U.S. rate hikes, mounting tensions over Ukraine, rising inflation and higher oil prices, said Carlos Casanova, senior economist at UBP. 

“But on the upside, valuations are becoming more attractive and earnings growth are still robust for some sectors. So I think we will see a tug of war in the market for this week,” he said. 

Full coverage: REUTERS 

Dollar Near Two-week High Amid Jitters Over Hawkish Fed, Ukraine Tensions 

The safe-haven U.S. dollar hovered near a two-week high against its major peers on Tuesday amid escalating worries about both a faster pace of Federal Reserve policy tightening and potential military conflict in Ukraine. 

The Australian dollar rose briefly after strong consumer price numbers boosted the case for a Reserve Bank interest rate increase this year. 

The Fed begins a two-day policy meeting later in the global day, and investors will be anxious for any hints on the timing and pace of rate hikes, as well as about how fast the central bank will shrink its more-than $8 trillion holdings of Treasuries and mortgage debt. 

Money markets are priced for a first rate hike in March, with three more quarter-point increases by year-end. 

The dollar index, which measures the greenback against six major peers, edged up slightly to 95.920, after climbing as high as 96.135 overnight for the first time since Jan. 10. 

“The case for the Fed potentially following up a March rate rise before the June meeting – even as early as April – is a very compelling one, and there is a risk that the market will still have to reprice,” said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. 

“The geopolitical risk has just added a new layer of safe haven support.” 

Markets until recently had mostly shrugged off the massing of Russian troops on Ukraine’s borders, but tensions have ratcheted up lately. NATO said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as an escalation of tensions. 

Full coverage: REUTERS 

Oil Prices Rise On Supply Disruption Jitters As Geopolitical Tensions Grow 

Oil prices climbed on Tuesday, regaining some of the ground lost in the previous day’s sharp losses, on concerns over possible supply disruptions amid rising geopolitical tensions in both Eastern Europe and the Middle East. 

Brent crude futures rose 48 cents, or 0.6%, to $86.75 a barrel at 0116 GMT, reversing a 1.8% fall in the previous session. 

U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents, or 0.4%, to $83.65 a barrel, having slid 2.2% on Monday. 

Oil prices reached seven-year highs last week, bolstered by tight worldwide supply and resurgent global demand. 

“The market tone stays strong, supported by heightening geopolitical risk,” said Chiyoki Chen, chief analyst at Sunward Trading. 

“We saw profit-taking on Monday when the prices moved higher and as Wall Street temporarily sank amid concerns over the U.S. Federal Reserve’s policy to reduce economic stimulus, but buying appetite for oil remained solid,” he said. 

A tumultuous day on Wall Street saw stocks end higher after posting heavy losses earlier in the day, as uncertainty over the rising geopolitical tensions and Fed policy boosted safe havens. 

NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western “hysteria” in response to its build-up of troops on the Ukraine border. 

Full coverage: REUTERS